58 | SmartInvestor | 03 . 2016

PROPERTY

Where Lifestyle and Business CombinedMany investors are actively looking for nuggets of property gold and The Hideaways Club might be what they are looking for. By Tony Goh

O ver the past few years, the international property market, along with the

global economy, has proven itself to be a volatile and uncertain area in which to invest. In these fluctuating financial times, when security of investment is of prime concern, those considering purchasing a holiday home or city apartment overseas are now being offered an alternative, through membership of The Hideaways Club.

Instead of outright ownership, members pay an annual fee

to invest in and stay at a wide portfolio of properties – a logical financial alternative to the higher risk traditional purchasing model.

Formed in 2006, The Hideaways Club is a global property company specialising in equity ownership and the management of a collection of international property investment funds.

The first fund – the Classic Collection – has grown to become the largest club of its kind in the world, offering the opportunity to invest in and exclusively enjoy an entire portfolio of luxury villas and

chalets throughout Europe, Africa, Mauritius and Southeast Asia.

With a lead-in membership fee of £132,500, investors in the fund automatically become members of The Hideaways Club, giving them year-round usage of a wide variety of properties worth upwards of £1.5 million.

A huge amount of research also goes into property selection, as you would expect. If the past few years have told us anything, it’s that the international property market for single investors can be volatile and daunting.

These range from chalets in the Swiss and French Alps and Japan’s premier ski region of Niseko, to luxurious villas in the South of France, Portugal, Spain, Morocco, South Africa and Croatia. The club recently added properties in Ibiza, Mauritius, Bali and Phuket to its portfolio, with many more scheduled to be added over the next three years.

The global equity destination club, which officially launched its first fund, the Classic Collection, in 2007, launched its second fund in 2011, the City Collection – a private members’ club which will provide members with a new way to enjoy a high-end city lifestyle. The City Collection offers members a range of fully-serviced apartments in some

Santisook in Phuket - The Hideaways Club’s Classic Collection

59SmartInvestor | 03 . 2016 |

of the world’s most vibrant and upmarket cities.

Set to initially begin with ten apartments spanning New York, London, Paris, Venice, Miami and Prague, additional cities scheduled to be added to the portfolio include metropolises from Moscow and Rio de Janeiro to Bangkok, Singapore and Sydney, with an ultimate target of 120 city properties over the next three years. Properties will be located in secure locations near the city centre, overseen by a five-star Concierge Service.

The City Collection has been created for people who enjoy travel, an international lifestyle and make frequent city visits. It is of particular appeal to those with busy schedules who are looking for a few days of relaxation, a family break or those wanting to experience the wide variety of shops, restaurants and nightlife on offer in these cities.

LocAL concieRgeThe key word in the The Hideaways Club’s description is ‘ownership’. With both club funds, investors buy a stake in the whole property portfolio which is selected, managed and maintained by leading experts in these fields. They also enjoy the benefits of a property investment without all the hassles typically associated with sole ownership.

A vast majority of destination clubs often lack the security of investment and actual asset ownership, and only involve the purchase of a limited number of properties, thereby limiting any potential future growth of the investment.

The Hideaways Club Classic Collection offers three types of membership – Premium,

Lifestyle and Associate. Premium membership costs £250,000 and allows members to enjoy properties four to eight weeks a year.

Lifestyle membership costs £171,666 and gives members two to five weeks a year and Associate membership costs £132,500 giving up to four weeks usage a year. In addition members will pay a nominal Annual Cost Contribution (ACC) that covers all running costs. In order to preserve exclusivity the club will close at 600 members and 100 properties within the next few years.

The City Collection offers two levels of membership – Premium and Associate. Premium membership costs £120,000, giving members up to 23 nights a year in any one of the apartments (working out at £230 a night and up to 60% less than

comparable alternatives).Each of Hideaway’s properties

comes with a dedicated local concierge that completes the lifestyle element. The properties, which the Club sources itself, guarantee spacious accommodations to suit families with kids to amuse and friends on a city break alike.

There could be concerns about the potential for an imbalance between investors seeking to cash out and the number buying. Without enough new buyers to cover buyout costs, outgoing investors could be left in the cold. But what could be more enjoyable than staying in your own home, knowing that it will be looked after all-year-round by dedicated professionals. All this

– but with a tangible ROI.

Interior of the Hideaways Club New York City

Villa Ombak Lembongan - one of the classic collections property